Forex Volume Indicators | Volume Indicator | List of Forex Volume Indicators | IFCM
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Forex Volume Indicators

Volume Indicators

Volume indicators are indicators that account for the volume. One of the main indicators of the market transactions is the Volume of transactions. The Volume of finished transactions is characterized by an active involvement of participants in the market, its strength and intensity. Volume increases together with a steady uptrend when the price rises, and, hereby, decreases when the price falls. The same happens with a downtrend, the volume increases when the prices fall and decreases as the prices rise. One of the main features of Volume is that it is always a little ahead of price. In forex market, as a rule, there is no way of showing the direct volume of transactions, that’s why an indicator called "Volume", is constructed, which reflects the number of price changes (ticks) during one bar. Volume indicator shows the activity of price changes and it is believed that this activity well correlates with real volume of transactions.

List of Forex Volume Indicators

Here are the most commonly used types of Forex volume indicators:

Accumulation/Distribution Indicator - AD Indicator

The Accumulation/Distribution line is used for trend confirmation or possible turning points identification purposes.

Money Flow Index - MFI Indicator

The indicator can be used to identify whether an asset is overbought or oversold, as well as to determine possible turning points.

On-Balance Volume - OBV Indicator

The On-Balance Volume line is used for trend confirmation or possible turning points identification purposes.

Forex Volume Indicator

Volume indicator is generally used together with price analysis to confirm trend strength or highlight its weakness and therefore identify possible upcoming reversals.

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